weighted cost of capital
component cost of preferred stock
transaction cost of preferred stock
financing of preferred stock
✅ The correct answer is B.
Cost which is used to calculate weighted average cost of capital is classified as component cost of preferred stock. Cost of preferred stock is the rate of return required by holders of a company’s preferred stock.
Cost which is used to calculate weighted average cost of capital is classified as component cost of preferred stock. Cost of preferred stock is the rate of return required by holders of a company’s preferred stock.